Big changes are happening in the rules that govern digital assets in the United States. In a shocking turn of events, Coinbase and Robinhood Crypto just said that the Securities and Exchange Commission (SEC) has stopped looking into their companies. This sudden change shows a shift from the previous administration’s enforcement-heavy approach. But is this a long-overdue fix, or does it show how close the crypto business is getting to politics?
Political or regulatory overreach
When Gary Gensler was Chair of the SEC, the agency went after major crypto companies in court, saying they had broken federal securities laws. Many people in the industry thought that cases against companies like Coinbase, Binance, Kraken, and Robinhood stopped new ideas from coming up and sent businesses overseas.
Now that President Trump is in charge, the SEC is going in the opposite direction. The timing is very important. Coinbase announced that it was dropping its lawsuit right after adding Trump’s former co-campaign manager, Chris LaCivita, to its global advisory board. It brings up important concerns:
- Did direct ties to Trump’s circle secure a favorable outcome?
- Will companies without political connections face continued scrutiny?
- Is crypto regulation now dictated by political loyalty rather than legal oversight?
A $110M Washington Power Play
A big part of how U.S. politics has changed is because of the crypto business. With over $110 million in political donations and almost half of all corporate donations in the 2024 election cycle coming from crypto companies, the industry has shown how much money it has. There are now 16 senators and more than 250 candidates for Congress who support crypto. This means that policies that support crypto are becoming more popular at the top levels.
Conclusion
The SEC’s decision to back down on Coinbase and Robinhood is a turning point in the history of regulating digital assets. But it’s still not clear if this change is a step toward long-term clarity or a bad example of political bias. The next four years will show if U.S. crypto regulation is based on legal certainty or political impact. This is because Congress is writing new laws, the White House is working with industry players, and crypto firms are getting deeper into Washington’s power structure.
